The part in the circle should move.
My VIN: 1983 canadian model
Be very careful when bleeding the clutch and check that no air went through. I had the same problem and finally resolve that by realizing there was a little bit of air in the shoulder at the junction of the line and the clutch slave cylinder. Just a tiny bubble will result at having no resistance on the pedal.
Thanks so much, now I know what to look for or feel for. The photos are great.
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